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Spreads in South Africa

Dec 2014|Pages: 60

Price: US$990

About this Report

Executive Summary

TRENDS

Bread in South Africa is feeling the impact of rising unit prices, with volume growth thus slowing. As a result, spreads is not set to experience significantly stronger growth in comparison to the previous year. Breakfast cereals is showing solid growth, being both a healthy as well as affordable breakfast option. Spreads carry a relatively high unit price, and so many consumers in lower LSM groups will eat bread with spreadable oils and fats only as they cannot justify the added expense of jam.

COMPETITIVE LANDSCAPE

Tiger Consumer Brands continues to lead spreads in South Africa with a value share of 28%, up from 27% the previous year. The company’s Black Cat peanut butter is the leading brand with a 15% value share. Foodcorp’s Yum-Yum peanut butter is the second largest brand, with its 10% value share giving the company third position overall. Pioneer Foods sits in second place through its Bovril and Marmite yeast-based spreads, commanding a share of 7% each in 2014.

PROSPECTS

It is expected that bread volumes will recover over the forecast period, resulting in subsequent growth within spreads. However, manufacturers will need to fight it out in terms of product price as consumers seek value for money.